Exodus Taps Bitcoin Reserves for $175M Move Into Onchain Payments
Quick Breakdown
- Exodus is acquiring W3C Corp for $175M, aiming to become a fully integrated onchain payments provider.
- A Bitcoin-backed credit facility with Galaxy Digital partly funds the deal.
- The move aligns with a broader industry push as Visa, Swift, and others accelerate the adoption of blockchain settlement.
Crypto wallet provider Exodus is making a bold leap into onchain payments, revealing plans to acquire W3C Corp, the parent company of payment infrastructure firms Monavate and Baanx, in a $175 million deal.
A Bid to own the entire payments pipeline
Exodus CEO JP Richardson said the acquisition is aimed at closing the long-standing gap between holding crypto and actually spending it.
Source:
Exodus
“By bringing card and payments infrastructure in-house, we are closing the gap between holding and spending, and positioning Exodus as the only platform you need for your money,”
he said.
By integrating Monavate and Baanx directly into its ecosystem, Exodus plans to internalize card issuance, processing and compliance tools. This reduces dependence on external vendors and expands the company’s capacity to support more payment assets, including popular stablecoins.
The move also gives Exodus the ability to issue cards through Visa, Mastercard and Discover.
Deal financed with Bitcoin-backed credit
To fund the $175 million acquisition, Exodus will combine cash reserves with borrowing from its credit line with Galaxy Digital, which is backed by the company’s Bitcoin holdings.
So far, Exodus has loaned $58.8 million to W3C to support its acquisitions of Monavate and Baanx, with the option to provide an additional $10 million in working capital. The whole transaction is expected to close in 2026.
Exodus CFO James Gernetzke said revenue streams from interchange, processing and program fees will form a key pillar of the company’s future payments business.
Integrations to boost XO swap and consumer tools
The company’s onchain aggregator XO Swap will gain access to Monavate and Baanx technologies for programmable payouts and turnkey card issuance. The investment follows Exodus’s recent purchase of Grateful, a LATAM-focused stablecoin payments platform.
Exodus’s expansion comes as global payment systems increasingly embrace stablecoins and blockchain settlement.
In September, Visa began piloting a system that enables banks to pre-fund cross-border transactions in USDC and EURC, offering faster settlement. Earlier, Swift announced a collaboration with Consensys and over 30 institutions to test a blockchain-based settlement layer designed for 24/7 global transfers.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Market Cap Surges by $1 Trillion in Nearly Four Months, 36x P/E Ratio Hits Highest Since 2008: Apple (AAPL.US) Earnings Leave No Room for Disappointment
Apple has reached its highest valuation since 2008 with a price-to-earnings ratio of 36, regaining the top spot globally with a market cap of $5.03 trillion. However, Wall Street remains cautious due to its high valuation and low growth, leaving little room for error in its earnings reports.
Quarterly refinancing statement due on Wednesday, U.S. Treasury market holds its breath for major signals
The U.S. Treasury will release its quarterly refinancing statement this Wednesday, and the market anticipates that this may be the largest adjustment to U.S. Treasury issuance guidance since the beginning of 2024. Citi even predicts that the Treasury might cut 20-year and 30-year bond issuances ahead of schedule, shifting to increase the supply of short- and medium-term bonds. However, with the proportion of Treasury bills already rising to 22%, the pressure from short-term financing and the demand for long-term borrowing are creating a dilemma for the adjustment of the issuance structure.
UBS Sees Buying Opportunity After Tech Stock Plunge: Market Underestimates AI Supercycle, Inflection Point for Returns May Come in 2027
UBS stated that after the recent AI pullback, the valuation of hyperscale data centers appears attractive, as the market expects the AI cycle to be shorter than it actually will be. Hyperscale data center operators may soon enter a phase where their significant investments in artificial intelligence begin to pay off. Gerry Fowler, UBS's Chief European Equity Strategist and Head of Derivatives, believes that a turning point may occur in 2027.
U.S. Stocks Preview | Three Major Index Futures Rise, WTI Crude Falls Below $100, Midterm Elections, Apple Earnings, and Nonfarm Payrolls All Coming This Week
On November 2 (Monday), before the US stock market opened, futures for the three major US stock indexes all rose.
Crypto prices
More
